Expenditure needs

The project “Standard expenditure needs” started with the legislative decree No. 216 that entrusted SOSE with the development of methodologies aimed to define standard expenditure needs.

Standard expenditure needs represent the actual financial needs of local governments in relation to their territorial features and the sociodemographic characteristics of resident population.

The use of standard expenditure needs to allocate equalization grants allows to overcome the old criterion of historical expenditure for resource allocation.

This methodological approach is considered a best practice in designing financing systems for local authorities and offers an important chance to the Country to upgrade intergovernmental relationships and make public expenditure of local governments more efficient.